Cameco increases ownership of prominent Canadian uranium mine Cigar Lake
TSX- and NYSE-listed Cameco and Orano Canada has reached an agreement with Tepco Resources to acquire its 5% participating interest in the Ciger Lake joint venture, in Canada.
Upon closing, Cameco's ownership stake in the Cigar Lake uranium mine in northern Saskatchewan will increase to 57.4% for a consideration of $115-million, while Orano's share will increase to 42.5%.
The transaction is expected to close in the third quarter of the year.
"Cigar Lake is among the world's best uranium mines, producing the highest-grade uranium ore from a safe, reliable and cost-effective operation. Increasing our ownership in this world-class asset further demonstrates our commitment to our strategy.
"Assets such as Cigar Lake play an essential role in fuelling global ambitions to expand nuclear energy generation," states Cameco CEO Tim Gitzel.
Cigar Lake's reserve and resource base includes proven and probable reserves of 172-million pounds of triuranium octoxide, measured and indicated resources of about 26-million pounds and inferred resources of 20-million pounds.
Since it started production in 2014, Cigar Lake has produced about 174-million packaged pounds.
The mine is set to produce between 17.5-million and 18-million pounds of uranium concentrate this year.
Cameco and Orano are working to extend the life of the mine to 2036, with planned capital projects including construction of a freeze pad, freeze distribution and underground infrastructure.
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